Saturday, September 20, 2008

Head and Shoulders on S&P100 was fulfilled

On September 4 2008, I posted my thoughts on that Head and Shoulders pattern on $OEX

Thursday, September 4, 2008 Time to remember that OEX pattern

This Thursday, S&P100 printed 523 intraday. I think the pattern achieved its target and we put an intermediate term bottom.

Fulfillment of the pattern is not the only reason for an IT bottom, but there are a lot of new developments on the long term charts.

Also please remember that the system I use to spot selling climax bottoms expected a low to be put on Thursday which came true.

I believe this actions has nothing to do with Fed and other news we got along the way. This was obvious on the charts.

13 comments by xTrenders :

PCP said...

Why do you say it has nothing to do with the news? The markets jumped as soon as the news about Bazooka's plan hit the wires and then exploded when he officially announced it. They certainly would have crapped if that announcement had been delayed, even until friday after close.

dadoes said...


Any thoughts on what will happen short term? Is the gap going to fill this week or do you think its a breakaway gap?

Thanks for your great insights. Its much appreciated!

Dcengr said...

Why it has nothing to do with the news?

You anticipate the news and buy/sell before it. At least that's the job of a bottom/top picker.

The momo traders job is to figure out that the trend has changed after they take a 10% loss and try to make it up on the 20% up thereafter and hope the trend doesn't change before they go broke.

PCP said...

"You anticipate the news and buy/sell before it. At least that's the job of a bottom/top picker."

At the moment, that seems easier said that done to me. I am just learning w/o risking anything.

I am curious; did you sell before the news hit the wire or after? I know that Sol sold after I posted that headline, maybe even Atilla too.

tradertom said...

Just got this email from my IA:

"King Henry is now officially taking over. If you don't write your Senators and Congressman immediately, this one man will have complete control over everything we ever stood for or ever hoped to be. If you think I am being dramatic, just read what he asked Congress and the Senate to approve in the Bail Out Act . . .

This deals with what he can do and who can review his decisions of hold him accountable . . . No One. He is demanding complete, ultimate and absolute authority. This is directly from the draft he sent to Washington.

Sec. 8. Review. Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

You had better start emailing and calling your Senators and Congressman. He already has enough votes to get this passed. If you don't act, King Henry rules."

-Mike Morgan

dougs charts said...

I assume you have seen the bigger hns patterns that project much lower prices? As we sit now this bounce is likely just that...

hotbutton said...

Things must be catastrophic if your senate etc are letting one man have such power. For god sake get him outta there.

I live in Australia and this man is even weilding his influence down under with a short selling ban officially coming into effect on Monday. I tried a week ago to short a Palladin CFD on the IG platform but was denied due to shorting rule. This must be an arbitrage opportunity? Is he elected even?

The stench of fear must be huge in the corridors of power if what you say about this mans power is correct. With the overnight no arbitrage system SYCOM operating it's near impossible to trade the aussi market index simply because the volatility of the US session writes all over foreign markets prior to the open.In effect in my opinion the US market is running World equities! Just look at the similarity - Head and Shoulders all over the World.

This attempt to re inflate the World on Friday may work but commits an obscene amount of next generation taxpayers money to prop up the Lifestyles of the Rich and Famous today.

Where are the outcries of corruption from the ultimate "baby holder" the US public?

tradertom said...

hotbutton, the majority of the US public is stupid and has no idea what the hell is going on.

PCP said...
This comment has been removed by the author.
Atilla M. Demiray said...

dougs charts said...

I assume you have seen the bigger hns patterns that project much lower prices? As we sit now this bounce is likely just that...

Saturday, September 20, 2008 7:48:00 PM EDT


No I dont know , could you show me?

Atilla M. Demiray said...

It has nothing to do with news because what creates those charts are the flawless wisdom of the market.

Anonymous said...

how does all of the movement last week effect China? You had called for a crash there and best I can tell, China is simply moving with the US market at this point.

Any guidance would be greatly appreciated

IC said...

Futures down. If this continues the morning will be horrible as there are now few short sellers to frighten.